ai guys seriously, this thing reminds me of the TELKOM and ORANGE deal KPLC has 800M paid up Pref shares. issued are about794M at par value of 20bob, if they were to convert the convertibles, it would have to be a conversion of 1:1 coz the common stock par is also at 20bob. That would mean, the Govt, would hold over 840M shares while everyone else takes the minority diff. My guess is that the govt, will offload these at a secondary IPO.
--Yes, the NAV will remain, more or less at 136BOB after conversion, however EPS will take a nosedive, at current rates to about 4bob or thereabouts
--Besides too much siasa" on why KPLC "should make so much profit"
--We do need another power distributor as the loss in transmission lines are just too high.
--Whatever happened to Manitoba?
--This conversion process is not as simple as u'd think, about 2 yrs back, i was talking to one of the guys charged with this process of conversion and splitting and I just asked him, how will this work, coz it looks quite complicated, as a parastatal, u want to ensure that the "common mwananchi" doesnt feel ripped off and the govt, ofcourse has to reap from their investments and he was disturbed and said, he doesnt really know and it is going to be "quite interesting" he later on, moved to a different company but still thinks this thing was too complicated.
--Ever asked yourself that 40+EPS, why is it that kplc dont even give out 5bob as divs, well its coz they cant, no...not coz they are re-investing, that money belongs to the Pref holders after the conversion process is over.
--I got into these just before TCL got in, and I sold out a couple of months before they exited(mine were obviously kidogo relatively) couldnt deal with all the uncertainty and also the mathematics was simple, conversion should be 1:1 as the par values are the same. Guys tread with caution, otherwise goodluck